Regulation

If like me, you keep up to speed with the insurance press, you will have read recently the horrendous case of the Hertfordshire family broking firm who lost everything following discovery that a trusted senior staff member had spent some £273,000 of client money, largely poured into the coffers of Bet 365, to feed his addiction.

It is apparent that firms are coming under increasing attack; where firms have reported issues to the FCA, there is a year on year increase. As an example, in 2014 there were, according to FCA statistics, 5 reports and so far, in 2016, 75!

As reported in a previous newsletter, the European Court of Justice had decided that the previous framework called the ‘International Safe Harbour Privacy Principles’ was invalid. As could be expected, both the EU Commission and the US Government started talks about a new framework and on 2 February 2016 an agreement was reached on a new way forward.

Ever since credit broking became regulated by the FCA, all firms, including General Insurance Brokers, have to report their data to the FCA.

Further to a previous newsletter article, we would like to remind all firms that the deadline for removing the P2P permission by use of a simple one-page form (rather than the more cumbersome CONNECT system) expires next month.

This is a question that I have been asked several times over the last few months so I thought it was time for a reminder as to what is required.

RWA does not want to become involved in your relationship with SSP although if you feel you are threatened by the situation, please let us know and we will do what we can.

There are some who wish to be popular and are afraid to be controversial or even honest about the possible results of The Insurance Act.

The above Policy Statement has been issued by the FCA outlining the final rules following on from the consultation process which started at the end of 2015. These new rules apply to Consumers only.

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